Fix Up Your Property Before You Sell: Short-Term Loans in Costa Rica

A property that needs work can sell for less than it could, and takes longer to sell. Fresh paint, a new roof, a finished kitchen or a clean garden can change what buyers are willing to pay. The problem is paying for those improvements before the sale. A short-term loan from GAP Equity Loans, secured by the property itself and repaid when it sells, can fill that gap.

The idea: borrow now, repay from the sale

You borrow against the property you plan to sell, use the money to prepare it, then repay the loan from the sale proceeds. Because GAP loans are interest only, your monthly cost during the work and the sale is the interest, not principal and interest. The principal is repaid at the end, which for a seller normally means when the sale closes.

• Loans from US$50,000, for six months to three years.
• Up to 50% of the property’s value, with around 30% or less preferred.
• No credit score required.
• Closes within 10 business days once the required documents are complete.
• Nothing to pay before closing. Fees are deducted from the loan.

Which improvements to focus on

This is not the time for a dream remodel. Focus on work that makes the property easier to show, easier to finance and easier to buy:

• Repairs a buyer would find in an inspection: roof leaks, water damage, electrical or plumbing problems.
• Finishing what is unfinished: a half-built room, a missing kitchen, incomplete fixtures.
• First impressions: paint, lighting, garden and entrance.
• Paperwork: make sure permits and documents for past work are in order. A buyer’s attorney will ask.

Get quotes before you borrow, add a margin for surprises, and set a realistic timeline. Keep receipts and before-and-after photos: buyers and their attorneys like to see what was done, and it helps justify your asking price.

Line up your sale plan

Your exit is the sale, so plan it at the start. Talk to an agent about realistic pricing before and after the work, and how long similar properties take to sell. If you want help selling, our sister company GAP Real Estate can market the property once it is ready.

Choose a loan term long enough to cover the work and a reasonable selling period. Terms run up to three years. Remember that early repayment carries a penalty, explained during loan review, so match the term to your realistic timeline.

Things to know

• The property must be titled and registered in the National Registry. Beach concession property does not qualify.
• If the property already has a mortgage, it is paid off at or before closing so the new loan is in first position.
• Borrowers of any nationality are welcome. Residency is not required.
• Loans are in US dollars.

For improvements you plan to keep rather than sell, see our guide to property improvement loans.

Frequently asked questions

Can the loan pay for the work in stages?

Construction and renovation loans can be funded in stages. The details are discussed during review.

What if the property does not sell before the term ends?

Plan for that possibility. Choose a term with room to spare, and have a back-up such as a price adjustment, refinancing or other funds.

Do I need residency or a credit score?

No. GAP requires neither.

Get started

WhatsApp us at +506 4001 6413 to get started, call or email info@gap.cr. You can also send a loan request.

This article is general information, not financial or legal advice. Sale prices and timelines are never guaranteed. Every loan is subject to review and approval.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)